Business, Economics, Media Criticism, Political Commentary

Four Ways

6 Comments

…that Congress caused the financial crisis. And they seem determined to continue (completely leaving Fannie and Freddie out of the new legislation).

[Update a while later]

Some thoughts on popping bubbles and the demonization of short sellers by clueless politicians.

[Update mid afternoon]

Don’t know what happened to the second link above — it was working when I put it up.

Meanwhile, Matt Welch points out that we are out of money. Or more precisely, we are out of other peoples’ money, which is, as Lady Thatcher famously pointed out the point at which socialism quits working.

6 thoughts on “Four Ways”

  1. This could simplify things considerably. Just show all members of congress this article and ask if they agree. Any answer other than yes or evasion means vote them out of office.

  2. Even the HuffPo is taking a few swings.

    Rep. Alan Grayson (D-Fla.) mocked the Federal Reserve in what is best described as a standup comedy routine on the floor of the House of Representatives Thursday.

    “I want to congratulate everyone in America, because you now own a hotel chain,” Grayson began. “I know what you’re thinking — you’re thinking: ‘That’s funny, I don’t remember buying the Red Roof Inn.’ But the Federal Reserve Bank, in its wisdom, has done it for you. The Federal Reserve Bank has seen to it that you have the pleasure of ownership of this delightful chain of hotels that extends from sea to shining sea.”

    “One of the properties,” Grayson continued, “happens to be the Red Roof Inn convention center property, right in Orlando, right in my district — I am so proud. I think I’ll stop by there and ask for a free room.”

    Grayson maintains this verve while explaining a leveraged buyout gone bust that apparently left the Fed holding the Red Roof Inn as part of a pile of crappy assets. “The Federal Reserve became the sucker of last resort. And in doing so, the Federal Reserve made you — you, America! — the sucker of last resort.”

    This purchase, no doubt came out of the $1.25 trillion that the Fed “invested” over the past couple of years in real estate to keep the market afloat.

  3. If it weren’t for the mainstream media being firmly embedded in the liberal camp this story would be a nightly mainstay of the network news programs. You can rest assured that were conservative polices the root cause of all this mess that story would be being sung from the network news rooftops as loudly and as often as possible.

  4. Karl, what is the point of quoting Representative Grayson?

    It is not so much what that man says, you know, the stopped clock effect of being correct twice a day, but the manner in which he says it, as you also know, dripping with snark. I refer you to this man’s remarks during the runnup to HCR, which make the Usual Suspects on Rand’s site seem like pikers in the snark department.

    Mr. Grayson, as a matter of fact, I do indeed “remember” becoming owner of the Red Roof Inn. OK, maybe not specifically the Red Roof Inn, but I remember calling Senator Herb Kohl to support TARP, which he did, and calling Senator Russ Feingold, who opposed it out of the same kind of political grandstanding motives that you, Mr. Grayson, are engaged in.

    Specifically, I supported TARP, a response to a severe financial emergency, and yes, for the Fed to have an ownership interest in the Red Roof Inn was and is a forseeable consequence of that.

    And if the Federal Government “owns” Red Roof Inn, why is it, Congressman Grayson, that you believe you are entitled as a Member of Congress to a free room in Orlando, FL? The Federal Government operates fleets of military transport planes. To do you feel entitled to “free” transportation on one of those . . . never mind, Mr. Grayson, maybe you do?

  5. The truthonthemarket home page reads they are out of service temporarily. A TM instalanche caused problem, no doubt.

  6. Specifically, I supported TARP, a response to a severe financial emergency, and yes, for the Fed to have an ownership interest in the Red Roof Inn was and is a forseeable consequence of that.

    Paul, as I understand it, the money that the Fed used was not TARP funds. Second, I think recent history has shown the futility of supporting TARP. We still have financial institutions ready to recreate the events of 2007-2009 (really 2001-2009) and a government willing to bail them out when they do.

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